We are back in the saddle discussing options strategies. With the VIX in the low- to mid-teens, that makes for an interesting time to look at volatility. We are going to look at a long call spread, possibly with a roll. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

• Indexes and volatility
• Looking to do this trade for positive theta
• Selecting expriations
• What's a time bomb butterfly?
• Setting up the trade
• Selecting strikes
• What do we want to happen?
• What is the max risk? Reward?
• To adjust or not to adjust?

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].